Pensioners Urge Swift Execution of ₦758 Billion Pension Bond

National Assembly

Pensioners operating under Nigeria’s Contributory Pension Scheme (CPS) have pressed the National Assembly to fast-track the full execution of a ₦758 billion Treasury bond approved earlier this year. The bond targets decades-old arrears owed to federal retirees, some of which have accumulated for over 16 years.

Issued in February 2025 and authorized by President Bola Tinubu during a Federal Executive Council session, the bond represents a major effort to settle long-overdue pension liabilities under the CPS.

Union Leader Speaks Out on Health Risks

On Tuesday, Mr. Sylva Nwaiwu, National Chairman of the CPS sector of the Nigeria Union of Pensioners, emphasized the need for prompt action by lawmakers. He described the bond’s approval as fiscally responsible, humane, and reflective of both moral and governance obligations—characteristics that warrant full legislative support.

He expressed deep concern over retirees who celebrated the bond’s approval but passed away before receiving payment. He warned that further delays could claim more senior citizens, some succumbing to stress-related ailments like hypertension. These deaths, he stressed, make it imperative to disburse funds quickly and prevent additional tragedies.

To honor the resolution, Nwaiwu announced that the union plans to hold nationwide solidarity celebrations once retirees receive their dues, celebrating the administration’s decisive action.

Bond Breakdown Revealed

Ms. Omolola Oloworaran, Director General of the National Pension Commission (PenCom), outlined the intended allocation of the bond:

  • ₦253 Billion to clear accrued pension rights for retirees of treasury-funded federal agencies—targeting delays that spanned several years.

  • ₦388 Billion to settle unpaid pension increases dating back to 2007, affecting across-the-board retirees.

  • ₦107 Billion to fully fund the Pension Protection Fund, designed to boost retirement income for low-income pensioners.

  • ₦11 Billion to close the pension gap for university professors, enabling full-salary retirement arrangements for qualified professors.

She also assured retirees that future accrued pension rights will be included automatically in monthly payroll through personnel cost general warrants—ensuring timely and routine payment of benefits.

Context: A Landmark in Pension Reform

The ₦758 billion bond marks an unprecedented intervention by the federal government to settle accumulated pension liabilities under the CPS.

PenCom and other reform advocates have praised the move as a “new dawn” for retirees. It aims to deliver on outstanding entitlements, restore retirees’ dignity, and strengthen confidence in the pension system—seen as vital for long-term sustainability.

Industry groups also estimate that bond subscriptions will channel billions into the capital market, providing attractive yields for Pension Fund Administrators and other investors, while stimulating economic growth through increased consumer purchasing power.

Legislative Hurdles and Union Pressure

Though the bond received unconditional support from the Federal Executive Council in February 2025, its implementation still requires National Assembly approval.

Mr. Nwaiwu urged both senators and representatives to expedite approval, citing mounting health risks for retirees and the union’s readiness to honor the President following full disbursement.

Media reports have indicated that PenCom expected the bond to be issued and funds disbursed within three months of approval—sooner than May 2025. As implementation stalled, pressure intensified from pension unions and advocacy groups.

What Comes Next?

  1. Bond Issuance: The Debt Management Office (DMO) must launch the bond on the domestic capital market.

  2. Investor Uptake: Pension Fund Administrators, institutional investors, and the public will need to subscribe to the bond.

  3. Funds Release: Upon subscription, funds will be deposited with PenCom and disbursed via PFAs to eligible retirees.

  4. Roll‑Out: PenCom will produce payment schedules, ensuring direct transfers and clear communication with retirees.

  5. Future Safeguards: Automatic pension accrual inclusion in monthly payroll should eliminate future funding gaps.

Why It Matters

Benefit Area Impact
For Retirees Resolves long-standing arrears, boosts health, and affirms social justice
For Nigeria’s Capital Market Injects liquidity and offers safe, high-yield bonds
For National Trust Restores confidence in CPS and government commitments
For the Economy Increases consumer spending, stimulating demand and stability

Final Take

The ₦758 billion bond offers a rare opportunity to address decades of unmet pension obligations. Yet it remains stalled by legislative delays. With retiree health at risk, swift National Assembly approval matters more than ever. If released as intended, the bond will not only settle historical debts but also signal a firm commitment to dignified retirement for all those who have served the nation.

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